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GBPUSD Extending Losses After BOE Minutes, Eyes on UK Data This Week

GBPUSD now seems like fading away its bullish momentum. The pair have posted losses for the 5 consecutive days, which is first time in around four months. Due to the geopolitical crisis in Ukraine, investors turned to the safe havens supporting US dollar against Pound. Today the BOE meeting minutes were released in which all the members of Monetary Policy Committee were unanimous while voting to keep interest rates on hold. The minutes also mentioned that weak wage growth rate in spite of strong employment growth made it difficult to gauge the degree of slack in the labor market. The pair declined soon after the release of the minutes, seems like the investors are now impatient after the unclear statement from the BOE regarding timeframe of the rate hike.

GBPUSD : 4 Hour Chart

On the 4 hour chart, the pair seems to be extending its losses falling below the 200 day SMA. The nearest support pair may find is at 1.7006.The pair may again recover its losses if the Retail Sales Data and GDP Data coming out on Thursday and Friday respectively beats the economist’s expectations.

GBPUSD : Daily Chart

 There is also a rising support trend line which continue to support the pair. So even if the pair falls below the support at 1.7006 it will find the next support from the rising support trend line.